Pagaya Technologies Ltd. (PGY) closed the most recent trading day at $21.19, moving 1.76% from the previous trading session.
PGY's credit quality is stabilizing in 2025, with impairments down sharply from 2024 as seasoning, funding and AI underwriting gains take hold.
Here is how Pagaya Technologies Ltd. (PGY) and Banco De Chile (BCH) have performed compared to their sector so far this year.
Pagaya and LendingTree target digital lending profits, but AI-driven underwriting and funding scale put PGY's growth story against TREE's mature marketplace.
In the closing of the recent trading day, Pagaya Technologies Ltd. (PGY) stood at $23.3, denoting a +1.97% move from the preceding trading day.
Pagaya Technologies (PGY) is now a more attractive Buy following a valuation reset and continued strong execution on growth and margins. PGY's AI-driven platform, partner expansion, and data flywheel provide structural growth and reduce cyclicality compared to B2C lenders. Q3 saw network volume up 19% YoY, revenue up 36% YoY, and adjusted EBITDA margins expand 900 bps to 30.6%.
Pagaya fundamentals continue to improve, despite significant stock price contraction and negative sentiment shift in AI and momentum stocks. PGY trades at a forward P/E just above 7, representing over 3x undervaluation versus peers at 24x, despite delivering 30%+ top and bottom line growth. I see a significant valuation gap likely to close if management sustains current growth momentum, making PGY a compelling 2026 setup.
Pagaya Technologies earns a 'strong buy' rating, driven by its AI-powered intermediary model that eliminates direct credit risk and enables scalable, commission-based growth. PGY delivered a significant Q3 2025 beat with EPS of $1.02 and a 19% YoY growth in network volume, showcasing powerful operational leverage and record margins. The platform's AI-driven risk assessment and securitization process lowers borrower servicing costs by 30%, diversifies partner risk, and supports rapid network expansion.
I see Pagaya Technologies' selloff as a credit-fear overreaction, not a fundamentals-driven mispricing. PGY's Q3 2025 results showed $350M revenue (+36% YoY), improved margins, and its third consecutive GAAP net income quarter. Operating leverage is real: adjusted EBITDA hit $107M (30.6% margin vs. 21.8% prior), and GAAP net income was +$23M, third straight profitable quarter.
PGY's AI-driven, cycle-resilient model, rising volumes and capital flexibility underpin its strong 2025 momentum and attract investor interest.
Pagaya Technologies Ltd. (PGY) shares have started gaining and might continue moving higher in the near term, as indicated by solid earnings estimate revisions.
The average of price targets set by Wall Street analysts indicates a potential upside of 64% in Pagaya Technologies Ltd. (PGY). While the effectiveness of this highly sought-after metric is questionable, the positive trend in earnings estimate revisions might translate into an upside in the stock.